Final Results

RNS Number : 5606X

Mountview Estates PLC

26 June 2008

MOUNTVIEW ESTATES P.L.C.

FINANCIAL HIGHLIGHTS

	2008	2007	Increase/(Decrease)
	£	£	%
Turnover (million)	54.3	68.2	(20.3)

Gross Profit (million)	35.9	43.1	(16.7)

Profit Before Tax (million)	29.5	50.2	(41.2)

Shareholders' Funds (million)	187.7	172.9	8.6

Earnings per share (pence)	530.1	899.2	(41.1)

Net assets per share	48.2	44.3	8.8

Dividend per share (pence)	155.0	150.0	3.3

Mountview Estates P.L.C. advises its shareholders that, following the issue of the final results, the relevant dates in respect of the proposed final dividend payment of 105 pence per share are as follows:

Ex-dividend date

16 July 2008

Record date

18 July 2008

Payment date

18 August 2008

CHAIRMAN'S STATEMENT

The general downturn in the United Kingdom economy has been widely documented and has impacted the residential property market in the last year. This has been evidenced in the results for the year ended 31 March 2008. Although these are below the record levels of the previous year the trading results for the year ended 31 March 2008 are nevertheless very sound.

My staff and colleagues have worked hard to produce what are good results for the year to 31 March 2008 and I am confident that they will rise to the challenge of the difficult times ahead. Indeed I look forward to the Company not only weathering these difficult times but in due course producing increased profits which will increase the rewards of its employees.

I have always emphasised the need to make the right purchases and the virtue of tight financial control. As we suffer a very harsh climate for the residential property sector I believe that this emphasis will be vindicated. Our purchasing performance during the year had been very strong already when we completed the purchase of the Magdalen Park Estate in south west London for over £43 million at the end of January 2008. These purchases have taken our borrowings to high levels by our standards but our gearing remains low by most standards and our continuing financial prudence will ensure that the Company enjoys the full benefit of these purchases and remains on a sound financial footing.

The previous year's profits were exceptional anyway but were made more so by the enormous increase of more than £14 million in fair value of investments compared with less than £2 million in the accounts for the year ended 31 March 2008. If the figures for the increase in fair value of investments are removed the fall in trading profits is less than 23% whereas the profit before taxation is shown as having fallen by over 40%.

The residential property market has become a very difficult environment in which to operate. The auction houses are reporting lower success rates, estate agents are closing some of their branches, mortgage finance is difficult to obtain and now there is the threat of higher interest rates. Despite these problems we are effecting our sales successfully although the prices achieved may be a little more modest than those we would have expected a year ago. We can only operate in the marketplace as it exists but by doing so we can comply with our banking covenants and may well be in position to take advantage of further good purchasing opportunities which occur.

Your Board is recommending an increased final dividend of 105 pence per share in respect of the year ended 31 March 2008 despite the fall in profits. This dividend is payable on 18 August 2008 to shareholders on the Register of Members as at 18 July 2008. This will make a total dividend for the year ended 31 March 2008 of 155 pence per share which is 3.4 times covered by the earnings per share.

CONSOLIDATED INCOME STATEMENT

FOR THE YEAR ENDED 31 MARCH 2008

	Year	Year
	Ended	ended
	31.3.2008	31.3.2007
	£000	£000

REVENUE	54,338	68,168

Cost of sales	(18,347)	(25,076)

GROSS PROFIT	35,991	43,092

Administrative Expenses	(4,207)	(4,526)

Operating profit before changes in fair value of investment properties	31,784	38,566

Increase in fair value of investment properties	1,784	14,224

PROFIT FROM OPERATIONS	33,568	52,790

Finance costs	(4,043)	(2,583)
Income from investments	4	20

PROFIT BEFORE TAXATION	29,529	50,227

Taxation - current	(8,358)	(11,029)
Taxation - deferred	(503)	(4,138)
Total taxation	(8,861)	(15,167)

PROFIT ATTRIBUTABLE TO EQUITY SHAREHOLDERS	20,668	35,060

Basic and diluted earnings per share (pence)	530.1p	899.2p

CONSOLIDATED BALANCE SHEET

FOR THE YEAR ENDED 31 MARCH 2008

	As at	As at
	31.03.2008	31.03.2007
	£000	£000
Assets

Non-Current Assets
Property, plant and equipment	2,719	2,607
Investment properties	36,203	34,080

Current Assets	38,922	36,687

Inventories of trading properties	271,361	183,889
Trade and other receivables	1,118	1,061
Cash and cash equivalents	802	646

	273,281	185,596

Total Assets	312,203	222,283

Equity and Liabilities

Share Capital	195	195
Capital redemption reserve	55	55
Capital reserve	25	25
Other reserves	56	56
Retained earnings	187,426	172,606

	187,757	172,937
Non-Current Liabilities
Long-term borrowings	95,000	29,644
Deferred Tax	9,697	9,194

	104,697	38,838
Current Liabilities
Trade and other payables	3,081	2,952
Bank overdrafts and loans	12,685	1,030
Current tax payable	3,983	6,526


	19,749	10,508

Total Liabilities	124,446	49,346

Total Equity and Liabilities	312,203	222,283

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 MARCH 2008

			Capital
	Share	Capital	Redemption	Other	Retained
	Capital	Reserve	Reserve	Reserves	Earnings	Total
	£000	£000	£000	£000	£000	£000

Changes in equity for year ended 31 March 2007

Balance as at 1 April 2006	195	25	55	56	142,849	143,180

Profit for the year					35,060	35,060

Dividends					(5,303)	(5,303)

Balance at 31 March 2007	195	25	55	56	172,606	172,937

Changes in equity for year ended 31 March 2008

Balance as at 1 April 2007	195	25	55	56	172,606	172,937

Profit for the year					20,668	20,668

Dividends					(5,848)	(5,848)

Balance at 31 March 2008	195	25	55	56	187,426	187,757

CONSOLIDATED CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 MARCH 2008

		Year	Year
		ended	ended
		31.03.2008	31.03.2007
		£000	£000

Cash flows from operating activities

Operating Profit		33,568	52,790
Adjustments for:
	Depreciation	190	146
	Loss on disposal of property, plant and equipment	21	45
	Increase in fair value of investment properties	(1,784)	(14,224)

Cash flow from operations before changes in working capital		31,995	38,757
(Increase) in inventories		(87,472)	(7,794)
(Increase) in receivables		(57)	(410)
Increase in payables		128	1,532

Cash generated from operations		(55,406)	32,085
Interest paid		(4,043)	(2,583)
Income taxes paid		(10,901)	(7,581)

Net cash (outflow)/inflow from operating activities		(70,350)	21,921

Investing activities

Interest received		4	20
Proceeds from disposal of investment properties		-	925
Proceeds from disposal of property, plant and equipment		61	41
Purchase of property, plant and equipment		(382)	(69)
Capital expenditure on investment properties		(340)	(35)
Net cash (outflow)/inflow from investing activities		(657)	882

Cash flow from financing activities

Increase in borrowings		67,411	-
Repayment of borrowings		-	(1,268)
Equity dividend paid		(5,848)	(5,303)

Net cash inflow/(outflow) from financing activities		61,563	(6,571)

Net (decrease)/increase in cash and cash equivalents		(9,444)	16,232

Opening cash and cash equivalents		646	(15,586)

Closing cash and cash equivalents		(8,798)	646

Notes to the Preliminary Announcement

1.	Financial Information

	The financial information contained in this report does not constitute statutory accounts within the meaning of section 240 of the Companies Act 1985. The full accounts for the year ended 31 March 2007, which were prepared in accordance with International Financial Reporting Standards as adopted by the European Union ('IFRS') and which received an unqualified audit report and did not contain a statement under s237(2) or (3) of the Companies Act 1985, have been filed with the Registrar of Companies.
	Financial statements for the year ended 31 March 2008 will be presented to the Members at the Annual General Meeting on 13 August 2008. The auditors have indicated that their report on these Financial Statements will be unqualified.
2.	Basis of Preparation
	The preliminary announcement has been prepared in accordance with International Financial Reporting Standards as adopted by the European Union ('IFRS') but does not contain sufficient information to comply fully with IFRS. The Financial Statements to be presented to Members at the 2008 AGM are expected to comply fully with IFRS.